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Bookkeeping · 5 min read

Payroll for Construction Companies

Payroll for construction companies can be more complex than standard payroll because workers may move between job sites, work different hours, receive different pay rates, and need labor costs assigned to specific projects.

Details

Construction payroll may involve:

  • Hourly employees
  • Overtime
  • Job costing
  • Union payroll
  • Certified payroll
  • Prevailing wage rules
  • Worker classification
  • Subcontractor payments
  • Multi-state payroll
  • Workers’ compensation reporting

Details

Accurate payroll helps contractors track labor costs by job. Labor is often one of the largest project expenses, so payroll must connect properly to job costing reports.

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Details

Construction companies should also separate employees from subcontractors correctly. Misclassification can create tax and compliance problems.

Details

A payroll provider or construction CPA can help contractors choose the right system and avoid costly payroll errors.

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